LMN Inc. has the following information for the year:

Net Income: R$150,000$

Preferred Dividends: R$20,000$

Weighted Average Number of Common Shares Outstanding: $100,000$

Convertible Preferred Shares: $10,000$ shares, convertible into $5,000$ common shares at the end of the year

Convertible Bonds: R$50,000$ with an annual interest of $5\%$ and convertible into $2,000$ common shares

Required:

Calculate the Basic EPS and Diluted EPS for LMN Inc. Show all calculations. $(12)$

Discuss how the conversion of preferred shares and bonds would affect the EPS. $(8)$